Building a Modern Fiscal System Technical Assistance

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The development objectives of the Building a Modern Fiscal System Technical Assistance Project for China are to inform the design and implementation of the Central Government's fiscal reform program and to improve the Government's capacity in public financial management. There are two components to the project, the first component being key elements of China’s public finance system. This component will also include project implementation support at the central and also subproject levels to strengthen the borrower’s capacity to ensure timely implementation of project activities, adherence to procedures and quality standards and monitoring and reporting of project implementation and results. It includes financing of incremental operating costs of the PMO and the CDM Center, including procurement and financial management experts. Eligible expenses under this component will be financed fully by the loan. The project will also finance a follow-up survey to assess the use of the newly acquired skills and capacity supported by the project. Finally, the second component is the fiscal policy and sustainable development. This component will support government’s objective to make fiscal policy more effective in facilitating an orderly transition to a more balanced, equitable and sustainable growth trajectory. The thematic component will support this objective by undertaking policy research, developing tools and increasing capacity to analyze linkages between economic growth and fiscal policy. Estimated total cost of these activities is USD 7.49 million.